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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Arnab, Ragini and Dhrupad are partners sharing profits in the ratio of 3 : 1 : 1. On 31st March, 2025, they decided to dissolve the firm. Their Balance Sheet showed Creditors ₹60,000, Arnab’s Brother’s Loan ₹95,000, Dhrupad’s Loan ₹1,00,000, Investment Fluctuation Reserve ₹50,000, Capitals – Arnab ₹2,75,000, Ragini ₹2,00,000, Dhrupad ₹1,70,000; Bank ₹50,000, Debtors ₹1,70,000 less Provision ₹20,000, Stock ₹1,50,000, Investments ₹2,50,000, Building ₹3,00,000, Profit & Loss A/c (Dr.) ₹50,000. Terms: (i) Arnab agreed to pay his brother’s loan. (ii) Investments realised 20% less. (iii) Creditors were paid at 10% less. (iv) Building was auctioned for ₹3,55,000; commission on the auction was ₹5,000. (v) 50% of the stock was taken over by Ragini at market price, which was 20% less than the book value, and the remainder was sold at the same market price. (vi) Dissolution expenses were ₹8,000, of which ₹3,000 were to be borne by the firm and the balance by Dhrupad; the expenses were paid by him. Dhrupad’s Loan was also repaid. Prepare the Realisation Account and Partners’ Capital Accounts.
REALISATION ACCOUNT
| Particulars | ₹ | Particulars | ₹ |
|---|---|---|---|
| To Debtors A/c | 1,70,000 | By Creditors A/c | 60,000 |
| To Stock A/c | 1,50,000 | By Arnab’s Brother’s Loan A/c | 95,000 |
| To Investments A/c | 2,50,000 | By Investment Fluctuation Reserve A/c | 50,000 |
| To Building A/c | 3,00,000 | By Provision for Doubtful Debts A/c | 20,000 |
| To Bank A/c: | By Bank A/c: | ||
| Creditors 54,000 | Investments 2,00,000 | ||
| Commission on auction 5,000 | Building 3,55,000 | ||
| Dhrupad’s Loan repaid 1,00,000 | 1,59,000 | Stock (remaining half) 60,000 | 6,15,000 |
| To Arnab’s Capital A/c (Brother’s Loan taken over) | 95,000 | By Ragini’s Capital A/c (Stock taken over) | 60,000 |
| To Dhrupad’s Capital A/c (Expenses) | 3,000 | ||
| By Loss transferred to: | |||
| Arnab’s Capital A/c 76,200 | |||
| Ragini’s Capital A/c 25,400 | |||
| Dhrupad’s Capital A/c 25,400 | 1,27,000 | ||
| Total | 10,27,000 | Total | 10,27,000 |
PARTNERS’ CAPITAL ACCOUNTS
| Particulars | Arnab | Ragini | Dhrupad | Particulars | Arnab | Ragini | Dhrupad |
|---|---|---|---|---|---|---|---|
| To Profit and Loss A/c | 30,000 | 10,000 | 10,000 | By Balance b/d | 2,75,000 | 2,00,000 | 1,70,000 |
| To Realisation A/c (Loss) | 76,200 | 25,400 | 25,400 | By Realisation A/c (Brother’s Loan taken) | 95,000 | – | – |
| To Realisation A/c (Stock taken) | – | 60,000 | – | By Realisation A/c (Expenses) | – | – | 3,000 |
| To Bank A/c | 2,63,800 | 1,04,600 | 1,37,600 | ||||
| Total | 3,70,000 | 2,00,000 | 1,73,000 | Total | 3,70,000 | 2,00,000 | 1,73,000 |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 7 Q.37 - Dissolution of a Partnership Firm", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 7 - Dissolution of a Partnership Firm.
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